CV_JanFeb_24

MDF deadlines SASE Channeling channelvisionmag.com Volume 23 Issue 1 JANUARY - FEBRUARY 2024 The Voice of the Channel Sponsored by MIGRATION MISTAKES Bridging the soft skills disconnect A PLACE FOR AI

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JANUARY - FEBRUARY 2024 EMERGENT 8 Enterprise up IT automation 8 Blockchain security boost 8 Copilot for SMBs 10 A Responsible Approach to AI Overcoming skepticism and building customer trust By Rebecca Jones 14 A Place for AI AI & automation close contact center ‘soft skills’ disconnect By Martin Vilaboy CYBER PATROL 20 How MSPs Can Win New Business by Providing CMMC Compliance By Aaron Wyant VIRTUAL REALITIES 24 Migration Migraines As companies struggle with cloud migrations, demand for strategic partnerships is accelerating By Gerald Baldino 28 Helping SASE to Soar Aryaka win illustrates partners’ role in SASE sales and implementations By Martin Vilaboy REMOTE CONTROL 34 Remote Reveal Unmasking and mitigating five top end-user computing challenges By Joel Stocker 36 Network Flex Building flexible and agile networks for the changed workplace By Karen Falcone & Jeff Li CHANNEL MANAGEMENT 40 How to Build High Quality Channel Marketing Programs By Kris Blackmon 42 Dollars Lost Co-op and MDF funds continue to go unused, resulting in missed opportunities By Gerald Baldino 44 Partners Set Yourselves Up for a Successful 2024! By Glen Nelson 46 Stuck in Limbo With Broadcom ending VMware’s channel program, partners navigate uncertainty By Gerald Baldino CORE COMMUNICATIONS 48 ITEXPO ‘Official Phone Sponsor,’ Snom Americas to Showcase M900 Series 50 SIB Helps End Users, Carriers ‘Spend Smarter’ through Data Intelligence and Automation 52 Cox Business Offers Differentiation Through Synergy, Opportunity, Customer-First Approach By Brady Hicks 54 A MOP Brings Automated Mobility Management to the Channel By Gerald Baldino 56 QuestBlue: Connecting Customers with Ease By Kevin Masse 58 FaxSIPit Helps Resellers Embrace the Evolution of Faxing By Brady Hicks 6 Editor’s Letter 59 ICYMI 62 Ad index CONTENTS Volume 23 – Issue 1 4 CHANNELVISION | JANUARY - FEBRUARY 2024

Generative AI currently sits at, or very near, its peak of overhype and inflated expectations. Other forms of artificial intelligence, such as responsible AI, artificial general intelligence, composite AI and AI TRiSM, aren’t very far behind. That’s in no way meant to disparage the excitement around AI technologies or downplay the potential and importance of artificial intelligence to true digital transformations. It just happens to be where we are on the generative AI roadmap right now, and according to Gartner’s historied Hype Cycle, that also happens to put generative AI cruising headlong toward some level of market disillusionment. In turn, as things move down that slope, much of the marketing and messaging currently being used to sell AI increasingly will become little more than white noise, and trying to sell AI for AI’s sake increasingly will become a mistake. There’s certainly more time for first movers and innovators to stake a claim and profit on the hype around generative AI, but as with most, if not all, new and emerging technologies, success eventually comes down to connecting AI-enabled solutions to specific customer problems and outcomes. Sure, AI’s computational power can turn what was once impossible or impractical into the relatively simple and instantaneous. Its greatest value could be its ability to provide entirely new, different and more efficient ways of doing things. But it’s not always easy for buyers to envision “new” and “different” ways of operating, and change can be intimidating. Without specific problems or outcomes, most technologies ultimately are regulated to “replacement technologies,” which mostly are purchased only when current investments expire, something breaks or a change can save a company lots of money. Limiting AI-enabled solutions and technologies to those scenarios would be seriously undervaluing its transformative capabilities. After all, if data is the new gold, what to do with all that gold is the next $1 billion dollar question. And often, AI is the answer. That is why our cover story this month (page 14) provides an example of an AI-enabled solution that solves a problem shared by the vast majority of contact center operators surveyed. In this case, AI’s power allows call center managers to make evaluations that they know will impact key operational and business decisions but were unable to execute with their existing solutions. In this case, the story involves the measurement of soft skills, adding a bit of buzziness, since soft skills currently are a high priority among those responsible for hiring and managing workforces and customer experience. It’s also a clear example of how AI can be used to turn company data into business value. The many forms of AI appear set to bring about unprecedented advancements and innovation, at uncommon speed, across all types of industries and areas of operations. All the while, business leaders are actively searching for how and where they can best take advantage of its immense potential, and they need help finding their way through this next proverbial “Wild Wild West.” Once the early rush of adopters subsides, it will take something more than having “AI” in ads and product descriptions to create the confidence that a trusted advisor can help customers navigate the way. AI Problems & Outcomes LETTER Martin Vilaboy Editor-in-Chief martin@bekabusinessmedia.com Brady Hicks Contributing Editor brady@bekabusinessmedia.com Gerald Baldino Contributing Editor gerald@bekabusinessmedia.com Percy Zamora Art Director percy@bekabusinessmedia.com Rob Schubel Digital Manager rob@bekabusinessmedia.com Jen Vilaboy Ad Production Director jen@bekabusinessmedia.com Berge Kaprelian Group Publisher berge@bekabusinessmedia.com (480) 503-0770 Anthony Graffeo Publisher anthony@bekabusinessmedia.com (203) 304-8547 Michael Burns National Account Executive michael@bekabusinessmedia.com (262) 993-9116 Beka Business Media Berge Kaprelian President and CEO Corporate Headquarters 10115 E Bell Road, Suite 107 - #517 Scottsdale, Arizona 85260 Voice: 480.503.0770 Email: berge@bekabusinessmedia.com © 2024 Beka Business Media, All rights reserved. Reproduction in whole or in any form or medium without express written permission of Beka Business Media is prohibited. ChannelVision and the ChannelVision logo are trademarks of Beka Business Media 6 CHANNELVISION | JANUARY - FEBRUARY 2024

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Most enterprises either maintain a combination of automated and manual IT processes or are still mostly manual. But respondents to recent polling by 451 Alliance express a clear desire to automate more IT processes and expect to be increasing their IT automation budgets. Currently, just more than 5 percent of respondents say all their IT processes are currently automated, and a quarter report to having most IT processes automated. The largest group of respondents (30 percent) has a fairly equal amount of automated and manual processes, show 451’s data, while 27 percent say they use mostly manual processes and 13 percent say all IT processes are manual. In 12 months, however, 16 percent of respondents expect all their IT processes will be automated, representing a threefold increase in that category. The biggest expected decrease is among those with mostly manual processes, projected to decrease to 19 percent of respondents from the current 27 percent. Turning specifically to budgets, more than four in five respondents (86 percent) report their IT automation budgets will increase, with just more than one-third of respondents projecting an increase between 26 and 50 percent. About one-fifth (18 percent) say their budget will increase between 51 and 75 percent. Microsoft is rolling out new enhancements for its AI-driven products and introducing new offers, including Copilot Pro and the expansion of Copilot for Microsoft 365 to a broader range of customers. The company also announced that it is extending its Copilot for Microsoft 365 offering, previously available primarily for large enterprises, to businesses of all sizes. This expansion includes Microsoft 365 Business Premium and Business Standard, with options for small businesses to purchase between one and 299 seats. The update removes the 300-seat purchase minimum for commercial plans and makes Copilot accessible for Office 365 E3 and E5 customers. Copilot for Microsoft 365 integrates AI capabilities across a user’s data environment, including emails, meetings, documents and web content. It offers features such as generating status updates from daily interactions and streamlining tasks in Microsoft Teams and other Microsoft applications. Yes, it’s been a few years since the “blockchain” buzz came and seemingly went. However, with cybersecurity cementing its place as a necessity in all verticals, there are new use cases for blockchain that should boost its presence, argue executives from TD SYNNEX in the distributor’s 2024 tech predictions. Originally developed as a technology behind cryptocurrencies, blockchain offers a promising solution to the cybersecurity vulnerabilities of centralized systems by decentralizing data storage and implementing advanced encryption techniques. In particular, the “(re)rise” of blockchain centers on DAO (decentralized autonomous organizations), which operate blockchain technology, said Clay Davis, TD SYNNEX vice president or global analytics and IoT. “DAOs utilize smart contracts for decision making and are managed without centralized control,” said Davis. “This could completely change how organizations are structured and how decisions are made.” Enterprises Look to Increase IT Automation Microsoft Expands Copilot Access to SMBs Blockchain Gets Cybersecurity Boost EMERGENT Which of the following IT process would benefit the most from automation technology? Security management 27% Database management 25% Application management 20% Backup and recovery management 19% Network management 19% Server management 18% Storage management 17% Disaster recovery 15% Testing 15% Virtualization management 14% Provisioning infrastructure, software, services 14% Configuration management 13% Incident management 12% Continuous integration/deployment (CI/CD) 12% Patch management 11% Problem management 11% Change management 11% Source: S&P Global; 451 Research 8 CHANNELVISION | JANUARY - FEBRUARY 2024

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EMERGENT Artificial intelligence (AI) has emerged as a transformative force in the ever-evolving technology landscape, promising unparalleled advancements and innovation across industries. Headlines are ablaze with the potential of AI to revolutionize business operations, yet many remain cautious of its reliability and credibility. In fact, three in five people hesitate to trust AI systems, showed a recent study by KPMG on the topic. As AI’s impact becomes increasingly evident and demand for its implementation skyrockets, AI governance and overall management framework seem to lag behind. Businesses face a crucial balancing act of keeping pace with rapid innovation, building trust with skeptical users and implementing AI responsibly. Striking a balance requires a strategic approach. Where to Start? Tips for AI Implementation Knowing how to approach AI for business operations can feel intimidating for decision-makers. Channel partners can help alleviate pressure by offering AI expertise to decision-makers and guiding them through the AI selection and implementation process. Experienced providers can help businesses navigate the complexities of AI adoption, ensuring a tailored approach that aligns with business objectives and drives sustainable impact. Before investing resources into AI implementation, companies should identify what processes and tasks best suit AI and note how it will impact their customers. A channel partner can guide the business in identifying these processes. One best practice is to align AI initiatives with real-world customer needs, focusing on practical applications that enhance user experiences. A Responsible Approach to AI By Rebecca Jones Overcoming skepticism and building customer trust 10 CHANNELVISION | JANUARY - FEBRUARY 2024

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For example, implementing AI tools to streamline processes such as data entry and analysis is a beneficial use case for the technology. Automating these processes saves team members time and enables them to allocate bandwidth strategically on work that supports customers, benefiting both the customer and the company. Additionally, it’s important to establish clear benchmarks for success to leverage AI solutions impactfully. Channel partners can guide this process by defining measurable objectives that move the needle for the business and demonstrate effective use of the investment required to adopt and maintain the technology. It’s also recommend relying on legal counsel to ensure the company’s AI usage aligns seamlessly with its values, industry regulations and emerging guidelines. The Role of Data In the intricate landscape of AI implementation, data is a critical factor for success, underscoring the integrity of AI frameworks. Effective AI solutions rely heavily on robust and representative data sets. Channel partners, serving as guides and strategic allies, play a pivotal part in ensuring that the data chosen for AI applications is comprehensive and inclusive. One challenge businesses face in developing AI solutions is determining what data sets will enable the AI system to work effectively. Greater data quality and diversity directly result in a more accurate and reliable AI solution. With the support of appropriate and comprehensive data sets, an AI tool can be directed through its machine learning processes, resulting in unbiased and precise intelligence generation. Foster Transparency Building and maintaining customer trust and a brand’s credibility is a fundamental and critical element of AI implementation. Transparent communication about AI use cases fosters openness and understanding while empowering modern organizations to leverage advanced technology to drive business results. Businesses position AI as a valuable tool rather than a mysterious force by articulating the specific ways in which AI enhances processes and benefits customers. It’s also important to set customer expectations by educating them about how AI works and what it can and cannot do. Communication channels such as FAQs, webinars or blog posts can help businesses disclose their AI applications to customers effectively and clearly. This clarity is instrumental in fostering positive customer relationships and establishing vendors as reliable and responsible AI stewards. Ongoing Evaluation & Continued Research Responsibly deploying AI extends far beyond initial implementation – it’s an ongoing process. Solution providers are pivotal in evaluating AI tools and ensuring their continued effectiveness. Continuous testing requires organizations to adopt proactive testing methodologies that promptly identify and address issues before they affect customers. Additionally, continual monitoring serves as a safeguard, helping detect biases and ensuring that an organization’s use of AI remains aligned with evolving business needs. Regular checkins with customers are equally essential to confirm that the tools don’t disrupt or create confusion for end users. It’s also necessary for businesses to stay informed about the latest trends and advancements in AI. Organizations must actively seek information about emerging AI use cases and potential risks, which channel partners can help with. Proactive measures, such as subscribing to industry news sources and tracking issues other companies experience, contribute significantly to effective risk management. Legal counsel is also a great resource to support this process. The responsible integration of AI requires commitment, adaptability and a community with a shared vision for a future where technology aligns seamlessly with societal values. AI is a powerful tool with the potential to revolutionize business operations and elevate user experiences. An ethical and legally informed approach to AI secures today’s success and paves the way for a responsible and sustainable AI roadmap that prioritizes trust. o Rebecca Jones is the general manager of Mosaicx, a leading provider of customer service AI and cloudbased technology solutions for enterprise companies and institutions. Rebecca joined the West Technology Group, owner of Mosaicx, in January 2021, after a 25+ year career focused on growing businesses, people and client success. EMERGENT Willingness to trust and accept AI systems Source: KPMG By 2030, how do you expect your organization’s office space to change? Source: 8x8 Future of Work: 2030 Vision Report What do you believe the future of work will predominantly be? Source: 8x8 Future of Work: 2030 Vision Report By 2030 which of the following do you think will most closely reflect your organization’s average full-time em Source: 8x8 Future of Work: 2030 Vision Report Remote/hybrid workers’ reactions to a full transition back to the office How would you feel if your company made a shift to full-time office-based work? Please select all that apply. (% of US working adults that work remote or hybrid) ‘How willing are you to trust AI [specific application]?’ [8 items] % Unwilling to trust % Ambivalent % Willing to trust % Low acceptance % Unwilling = ‘Somewhat unwilling’, ‘Unwilling’, or Completely unwilling’ % Willing = ‘Somewhat willing’, ‘Willing’, or Completely willing’ % Ambivalent = ‘Neither willing nor unwilling’ % Low acceptance = ‘Not at all’ or ‘Slightly’ % High acceptance = ‘Highly’, or Completely’ % Moderate acceptance = ‘Moderately’ % Moderate % High acceptance Trust Acceptance ‘To what extent do you accept the use of AI [specific application]?’ [3 items] 29 29 38 33 32 39 Overall survey IT leaders CX le Reduced office space, used primarily as hybrid work deskshare Reduced office space, used primarily for client/team meetings No change, used as a 9-to-5 workplace By 2030, my organization could operate without a physical office By 2030, most organizations could operate without a physical office 42% 43% 41% 18% 19% 17% 22% 13% 31% 10% 15% 5% 8% 10% 6% Overall survey IT leaders CX leaders Hybrid Work-from-anywhere Remote In-person/office 60% 56% 63% 22% 23% 22% 11% 15% 7% 7% 6% 8% Overall survey IT leaders C Daily flexible/asynchronous Weekly flexible/asynchronous Task oriented Company schedule/traditional 9-to-5 38% 40% 38% 27% 30% 24% 9% 8% 9% 26% 21% 31% 12 CHANNELVISION | JANUARY - FEBRUARY 2024

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A PLACE FOR AI By Martin Vilaboy AI & automation close contact center ‘soft skills’ disconnect According to McKinsey & Company senior partner Eric Lamarre, current conversations around AI all too often “make it feel like a technology in search of a problem.” For a transformational technology such as AI, perhaps that’s not so surprising. After all, it’s understandable for the mind to go to “Where else could I apply this?”, continued Lamarre. A better way to begin a conversation around implementing AI, for both the seller and the buyer, is to “always start with the business problem you want to solve,” advised Lamarre, in a recent McKinsey podcast. “When business leaders say, ‘That’s the problem I want to solve with technology,’ it becomes easier to develop the technology road map to solve that problem.” One brooding problem that contact center managers currently face – and AI is increasingly being applied toward – is inadequate quality management of the all-important customer experience (CX). Legacy analytics can limit contact center agent monitoring to experiences that are solely reactive, one-size-fits-all and stuck in single or siloed channels, say proponents of infusing AI into contact center operations. That’s opposed to a scenario in which AI instantly informs interactions, enabling businesses to be more proactive, personalized and optimized for the types of cross-channel, digitally centered conversations that today’s consumers increasingly expect. It’s why a recent survey of 400 decision-makers who work in customer care, customer service or the contact center department found that nearly all (99 percent) of companies have plans to invest in AI analyt14 CHANNELVISION | JANUARY - FEBRUARY 2024 EMERGENT

ics-driven quality management within the next few years. And the quality management problem is particularly relevant to the measurement of agent “soft skills,” which lately have become a top priority to those responsible for hiring and evaluating employees. Unlike technical skills or acquired knowledge, soft skills tend to include somewhat esoteric qualities, traits and behaviors such as personality, emotional intelligence, adaptability, interpersonal communications and understanding. These types of skills, the thinking goes, are indicators of an ability to lead, creatively problem solve, understand the bigger picture and be persuasive influencers, among other advantages. As one tech executive in charge of talent acquisition recently told Fox Business News in an article on the importance of soft skills, “There is no point in being the smartest person in the room if no one wants to listen to you.” In the contact center environment, strong soft skills, such as empathy, effective communications, active listening and problem-solving, directly impact customer experience, argue executives at NICE, a provider of AI-powered self-service and agentassisted CX software for the contact center, which also recently released the aforementioned survey on contact center quality management. “When agents exhibit these positive behaviors, customers feel valued, understood and are more likely to maintain a long-lasting relationship with the brand,” stated the survey report. Consider, for example, a complex technical support interaction or a follow-up call in which the customer already is frustrated before picking up the phone. “In these situations, soft skills such as empathy can make all the difference to customer experience,” continued the study. Indeed, as much as 94 percent of respondents agree that agent soft skills are a very important factor to positive CSAT customer satisfaction scores, a top CX metric being measured today and where organizations currently are competing, said NICE researchers. However, only 41 percent of companies said that they assess agents based on any type of soft skills. That’s largely because soft skills – without AI and automation – aren’t easy to accurately measure. Due to the subjective nature of soft skills assessments and an inability to be consistent when applying descriptions and measurements, soft skills scores, up to this point, have been easily disregarded and often disputed by managers and employees, suggest the survey findings. When asked to name their greatest challenges in assessing contact center agent soft skills, nearly half of respondents cited “subjective analysis,” followed by “lack of buy-in from operations” (41 percent), “a driver of quality score disputes” (39 percent), and “agents think it is unfair” (37 percent). The larger the company, and the more stakeholders involved, the harder obtaining operational buy-in becomes, said NICE researchers. mployee work schedule? Subjective analysis Lack of buy-in from operations Driver of quality score disputes Agents think it is unfair Skills that are important agreement Lag time between interaction & feedback Calibration alignment Creating good definitions like empathy We don’t have any challenges Manual processes QA team’s goals don’t align with the company’s goals Not measuring across all channels Lack of dedicated resources Random sampling is not representative of agent performance Sample size not representative of agent performance Agent buy-in to feedback Inconsistent application of quality management eaders % % % CX leaders % % % Greatest Challenge in Assessing Agent Soft Skills Source: NICE benchmark survey, 2023 42% 41% 39% 37% 36% 35% 31% 28% 2% Top Challenges of Effective Quality Management Source: NICE benchmark survey, 2023 42% 42% 38% 38% 36% 35% 31% 30% Source: YouGov, November 2023 I would want to quit My morale would be negatively impacted My productivity would be negative impacted I would accept it grudgingly It wouldn’t make a difference to me I would be happy about the change Percentage of Funds Used Source: Brandmuscle HIGHEST SPENDERS HIGH SPENDERS MID SPENDERS LOW SPENDERS FUND UTILIZATION 90%+ = HIGHEST SPENDERS 75-89% = HIGH SPENDERS 50-74% = MID SPENDERS 25-49% = LOW SPENDERS <25% = LOWEST SPENDERS LOWEST SPENDERS NONE NOT SURE Plans to Invest in AI Analytics-Driven Quality Management Source: NICE benchmark survey, 2023 We already have it We’ll have it within 6 months We’ll have it within 7 to 12 month We’ll have in 12+ months No immediate plans 29% 28% 28% 22% 20% 14% 36% 10% 7% 16% 9% 9% 13% 14% 12% 29% 45% 1% 16 CHANNELVISION | JANUARY - FEBRUARY 2024 EMERGENT

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The issue of agent buy-in, or what NICE researchers call “the trust deficit,” is a top challenge for supervisors when it comes to contact center quality management, in general. According to the NICE survey results, 42 percent of respondents cited the likelihood of agents buying into the feedback they receive as the number one barrier to effective quality management, tied for first among the barriers listed with “the inconsistent application of quality management.” As it turns out, both of these challenges are directly related to the third challenge on this list: “random sampling that is not representative of agent performance.” If there is one take away from the NICE survey, it’s that contact center measurements and evaluations tend to rely on inadequate, skewed or random data. And that’s a big problem because that data is being used to make critical decisions. On average, as few as six digital interactions and 13 voice interactions per agent are being sampled every month by CX quality control programs. About a quarter of contact centers are measuring less than 10 voice and digital interactions combined each month, according to the survey data. Considering that all respondents work for contact centers with more than 200 agents, “this is statistically an insignificant sample size and not representative of agent performance,” stated the survey report. Meanwhile, 65 percent of respondents choose samples based on post interaction customer satisfaction surveys, which are known for attracting either highly satisfied or highly unsatisfied customers, potentially skewing the sample, argued NICE researchers. CSAT surveys also tend to have a low response rate, representing an insufficient sample of customers. Collecting CX data on digital interactions is particularly complex, and the technology is still maturing, which likely explains why 60 percent of companies don’t know what percentage of their customer digital interactions are being sampled, compared with just 9 percent for voice interactions. About half of companies target interactions based on speech analytics (55 percent). According to NICE executives, speech analytics tend to be used to check if the contact center staff followed a process or to make sure they said key phrases or didn’t use specific terms. This may be useful for checking processes but doesn’t necessarily drive improvements in customer satisfaction. In 51 percent of cases, control samples are chosen completely at random. Yet despite the lack of a statistically significant or holistic view, 85 percent of stakeholders said quality management programs influence business decisions across their organizations. That certainly sounds like a widespread problem. AI-driven quality management removes some of the subjectivity by automating the scoring of a wider array of agent soft skills across close to 100 percent of interactions, rather than just samples, providing a more holistic view of the customer experience, while at the same time reducing the influences of perceived human bias that create skepticism in scores. As with all computing breakthroughs, AI takes a once impossible, or at least impractical, level of data gathering and analysis and moves it toward the mundane. “As contact centers don’t have a truly holistic view of agent performance data, and are relying on small samples and inconsistent analysis, you cannot call decisions based on current quality management programs data driven,” said NICE executives. “Without being able to judge soft skills, organizations are viewing an incomplete picture.” The soft skills disconnect certainly is not a hidden problem or one that’s difficult to comprehend. After all, when it comes to assessing agent soft skills, 98 percent of respondents admit to challenges. And with the quality of the customer experience becoming a top area of focus among businesses the past few years, managing the quality of the call center is more critical than ever. Perhaps that’s why nearly all stakeholders surveyed for the NICE research report have plans to invest in AI analytics-driven quality management within the next 12 months or so, including the 14 percent that have done so already. o me employee work schedule? Manual processes QA team’s goals don’t align with the company’s goals Not measuring across all channels Lack of dedicated resources Random sampling is not representative of agent performance Sample size not representative of agent performance Agent buy-in to feedback Inconsistent application of quality management Top IoT Industries Based on Market Share CX leaders 41% 17% 31% 5% 6% ers CX leaders 38% 24% 9% 31% Source: NICE benchmark survey, 2023 Top Challenges of Effective Quality Management Source: NICE benchmark survey, 2023 42% 42% 38% 38% 36% 35% 31% 30% 18 CHANNELVISION | JANUARY - FEBRUARY 2024 EMERGENT

To compete for contracts with clients in the Department of Defense (DoD) supply chain, Cybersecurity Maturity Model Certification (CMMC) compliance is a requisite that businesses must first achieve. While those well-paying contracts are well worth pursuing, CMMC is particularly complex, with security requirements and assessment processes that take expertise to navigate. Many businesses that go it alone won’t get far. For MSPs, CMMC therefore creates a huge opportunity to gain that rare expertise, build out CMMC compliance assistance as a core offering, and serve new clients as a partner that helps them meet their own goals as CMMC-certified businesses. CMMC and the DFARS 252.204-7012 clause are key regulations governing all contractors and subcontractors in the DoD supply chain. According to the DFARS 7012 clause, any organization with a DoD contract or subcontract that stores, processes or transmits controlled information needs to safeguard that data as prescribed by the NIST special publication 800-171 framework, and further requirements. CMMC compliance requirements also are frequently revised, such that MSPs must remain engaged with ongoing developments to keep clients’ security practices aligned with the latest CMMC changes. Currently, the most pressing example of this dynamic nature is CMMC 2.0, which the DoD introduced in 2021 to improve its third-party cybersecurity assessment and certification methods, and which is undergoing iteration on its path to final implementation in 2025. CMMC 2.0 introduced a three-level system of increasingly strict requirements around cybersecurity maturity and controls. The CMMC level required of a contractor or subcontractor is determined by the sensitivity of the information a given business handles. Under CMMC, organizations must complete a Basic Contractor Self-Assessment, and self-attest to the Summary Level Score or Supplier Performance Risk System (SPRS) score of that assessment. Organizations are only eligible to bid on defense contracts after submitting their score. Based on the NIST SP 800-171 DoD Assessment Scoring Template, the SPRS score checks compliance with By Aaron Wyant CYBER PATROL How MSPs Can Win New Business by Providing CMMC Compliance 20 CHANNELVISION | JANUARY - FEBRUARY 2024

all 110 controls of the CMMC framework – and any score less than 110 is a failure. Businesses that earn sub-110 scores are required to submit a Plan of Action and Milestones (POA&M) – a binding commitment to achieve full CMMC compliance – which delineates specific security enhancements and timetables for their implementation. Businesses may also be selected for examination by an independent and accredited CMMC Third-Party Assessment Organization (C3PAO). While the chances of undergoing this intensive vetting process are low, businesses must thoroughly prepare themselves or have an expert MSP at their side to ensure their preparation. Why to become a CMMC MSP Businesses pursuing CMMC compliance have two roads forward: invest years of effort learning the ropes of CMMC’s 110 controls, or massively accelerate that timetable and eliminate most of the expenses and friction of that process by partnering with an MSP that knows the ropes and can deliver the security processes to keep things moving forward. There are major dividends at the end of each road; earning CMMC compliance will open the door to valuable new contracts. MSPs that position themselves to fast-track that success can easily earn themselves a robust new clientele as well. To do so, MSPs should build out service programs that feature holistic strategies for supporting CMMC compliance, complete with cybersecurity technologies that meet the precise data protection, access control, risk assessment and further specific technical requirements of clients pursuing CMMC. The benefits of achieving CMMC compliance also extend past the immediate advantages of earning DoD contract clients. CMMC directly mirrors NIST 800-171 controls. With NIST quickly rising as the de facto standard for effective cybersecurity recognized in every industry, a business with CMMC compliance credentials can rightfully tout its cybersecurity capabilities to potential clients. MSPs should make those universal benefits plainly understood and provide a security technology stack that makes it clear and simple to demonstrate compliance to clients. For example, our own stack features encryption and access control solution BeachheadSecure because it alone fulfills 76 percent of the NIST cybersecurity framework’s requirements, paired with additional tooling to achieve 100 percent CMMC/ NIST compliant protections. We also use CyberQP as an MSP-specific security tool, among others, to help us further align to NIST. When a business compares competing security MSPs, being the potential partner that checks all the boxes and offers the most assured protections will win you that client just about every time. The details of CMMC compliance are largely a mystery to businesses just beginning to learn the space. There are vendors out there that prey on such businesses, making unsupported claims about products that don’t actually help with meeting CMMC controls. MSPs that come across deceived businesses have an immediate opening to display their expertise by explaining the realities of CMMC and win trust and new clients by setting them on a more secure – and more profitable – path forward. o Aaron Wyant is the president of Dispatch Tech, a technology solution provider based in San Diego. He is also the co-author of the Amazon bestseller “On Thin Ice,” which looks at modern cybersecurity strategies. CYBER PATROL Source: U.S. Department of Defense CIO Comparison between CMMC Models 1.0 and the planned CMMC Model 2.0. The CMMC Model 2.0 is notional until rulemaking is completed. 22 CHANNELVISION | JANUARY - FEBRUARY 2024

Countless organizations have shifted to the cloud in recent years looking to increase operational efficiency, lower costs and enhance agility. But the truth is, cloud transformation is typically a challenging journey rather than a quick fix — and migration projects don’t always go according to plan. In a recent PwC survey, more than 78 percent of executives claimed their companies had adopted cloud in most or all parts of their business. Yet, more than half have failed to realize key outcomes such as cutting costs and improving resilience. “Amidst the promises of cloud transformation, a harsh reality emerges — the cloud migration journey is fraught with challenges that often result in setbacks, unforeseen expenses and the necessity for agile adaptation,” explained RapidScale in a new report on cloud migration. “Companies are struggling with finding the right internal talent and external partners to make their cloud projects successful.” Among those that have migrated a percentage of their environment to the cloud, one in three leaders claim their migration efforts are behind schedule, according to the RapidScale data. Twenty-six percent claim their efforts have stalled completely. And the majority (68 percent) of IT decision-makers say less than half of their IT environment has been migrated or deployed to the cloud. Perhaps most concerning of all to cloud services providers, nearly a third of companies changed, added or removed cloud providers to deal with challenges during their cloud migration. By Gerald Baldino VIRTUAL REALITIES 24 As companies struggle with cloud migrations, demand for strategic partnerships is accelerating What are the reasons why your organization’s migration of IT workloads to the cloud have slowed or stopped? Concerns over data and IT 43% Increased complexity 42% Budget cuts due to economic conditions 30% Compliance and regulations 28% Leadership skepticism 27% Source: Rapidscale

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What’s Stalling Migrations? Security and complexity are the two main barriers that are stalling cloud projects. According to RapidScale, 43 percent of leaders have slowed migrations due to security concerns, while 42 percent are struggling with complexity. Further, 90 percent of respondents claim to have underestimated the complexity of cloud migrations to some degree, while 24 percent admit to making a massive miscalculation about the challenges they would face. The report also mentions budget cuts, compliance and leadership skepticism as top barriers to progress in the cloud. What’s more, over half of organizations have been forced to move talent away from existing projects to address cloud-related issues. “This clearly highlights that the complexity of cloud projects requires an organization’s best and brightest,” the report stated. “Moving resources to these cloud initiatives can degrade progress on other technology projects.” Hidden Costs Create Financial Burdens Companies often migrate to the cloud expecting to save money. However, reducing costs requires careful planning and execution at every turn. Cloud costs can quickly pile up from things such as data egress charges, network connectivity and data storage to name a few examples. In RapidScale’s report, 99 percent of respondents reported facing hidden costs in their cloud migrations. “The most prevalent hidden costs have been the simultaneous support of on-premises and cloud operations, unchecked cloud sprawl, and strategic shifts toward speed rather than efficiency, each affecting 40 percent of IT decision makers,” the report stated. PwC separately found that 50 percent of companies fail to realistically plan for cloud expenses and wind up paying more due to coexistence and other dependencies. Security a Top Need Cloud security remains a major concern, with migrations expanding attack vectors and exposing companies to greater risk. Many companies are migrating to the cloud and launching cloud-native services without the necessary visibility and security expertise to combat sophisticated threats. In Palo Alto’s latest “State of CloudNative Security” report, 90 percent of organizations said they can’t detect, contain and resolve cyberthreats within an hour. And in a recent “Cyber Risk Alliance Report,” one-quarter of respondents (25 percent) said they lack the skills or experience to properly secure the cloud. Fortunately, RapidScale’s report reveals that companies are increasing their efforts to protect their assets in the cloud. Thirty-six percent of respondents claimed they have increased their focus on security and compliance. That said, migrating to the cloud requires more than just investment and expertise. Companies also must modernize their culture and strategy to prioritize security and keep up with evolving threats. “For a security professional, the challenge in migrating to the cloud is about more than the migration of apps and data,” Palo Alto analysts explained. “Modern architectures and tech stacks for building, deploying and running applications require a new approach employing application-aware tools, products and methodologies. In view of the expansive attack surface, securing cloud native architectures must be the security professional’s objective.” Opportunity for Partners Challenges aside, cloud migration will undoubtedly accelerate in 2024 as more companies look to boost speed, efficiency and reliability. But while IT leaders may be eager to embrace the cloud, many lack the resources to execute migrations and achieve their goals. Considering this, channel partners must do more than simply guide clients to the cloud. Companies require strategic advisors who can help anticipate obstacles, control costs and deliver value in unexpected areas. Organizations also need support evolving cloud strategies and navigating trends including serverless computing, AI/ML integration and edge computing. Having honest discussions about the challenges and pitfalls of cloud computing can help build trust and improve cloud outcomes. As RapidScale pointed out, 99 percent of respondents expressed a strong preference for service partners if they were to redo their cloud migration. “This highlights the pivotal role of partners with expertise across a spectrum of services, from application modernization to cloud infrastructure design,” RapidScale said. “These partnerships streamline the migration process, optimize operations, reduce costs and provide the necessary support to navigate the complexities of cloud transformation.” o What are the top hidden costs, if any, you have encountered during your cloud migration? Supporting operations for both on-prem and cloud during a migration 40% Changes to cloud strategy to prioritize speed over optimization and efficiency 40% Cloud sprawl due to lack of constraints, guardrails, and governance 40% Refactoring legacy and/or monolithic applications not built for cloud 38% Source: Rapidscale If you were to have the chance to redo your cloud migration, what type of service partner would you use to facilitate migration to the cloud? Application development/modernization partner 59% Cloud infrastructure design and/or deployment partner 54% Automated infrastructure migration software 52% Database migration or refactoring partner 49% We would use the same partner we used in the past 16% Source: Rapidscale VIRTUAL REALITIES 26 CHANNELVISION | JANUARY - FEBRUARY 2024

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In all or most cases, a transition to SASE will be the largest network and/ or security project an organization has ever undertaken. Much more than upgrading a switch or swapping out POTS lines, the process of planning for, purchasing and integrating secure access service edge entails a good amount of heavy lifting. True transformation, after all, is never easy, particularly one that moves disparate systems and vendors to unified security, access and application performance, across all sites, down to the end-user level. Starting the process alone requires buy-in and strategic engagement with decision makers throughout corporate leadership, IT and lines of business. Any mistakes during the planning, RFP, selection, integration and deployment process can, and likely will, produce unintended ripple effects throughout an organization. For all but the largest and most heavily resourced organizations, it’s a lot to ask from already overworked network and security teams – even more to ask them to champion such a change. Not that the challenges are squashing interest and adoption. According to Dell’Oro Group, spending on SASE solutions grew 33 percent year-overyear in Q3 2023, reaching a record $2.2 billion. The research firm expects 2023 SASE revenues to exceed $8 billion. Rather, the realities of SASE sourcing seem to have encouraged organizations to supplement their limited IT resources with the expertise and foresight provided by advisor and consultant types. And they are turning to these partners often and early on in the process, report providers. At Palo Alto Networks, for instance, “We’ve seen that large transformation projects are increasingly led by our partners,” Prem Iyer, senior vice president, global ecosystems, recently told SDxCentral. “Engaging a partner in the journey to acquire and implement a SASE solution offers enterprises many benefits in planning, implementing and operating these solutions,” Iyer said. Robert Arandjelovic, director of solutions strategy at Netskope, agreed that outside of the largest organizations with experience integrating technologies, “many organizations are looking to partner-delivered SASE offerings.” Aryaka Networks, for its part, recently announced record growth of partnerled sales for its managed SD-WAN and SASE solutions. At the close of its fiscal year 2023, Aryaka’s channel revenue accounted for 85 percent of the company’s overall sales, up from an historical average of 73 percent. “The complexity of implementing SASE, due to its extensive network and operational integration requirements, often necessitates the specialized skills of technology advisors and IT consultants,” said Craig Patterson, senior vice VIRTUAL REALITIES Aryaka’s airline win illustrates partners’ role in transformations Helping SASE to Soar By Martin Vilaboy 28 CHANNELVISION | JANUARY - FEBRUARY 2024

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